Street Smart Success
By Roger Becker
Street Smart SuccessOct 07, 2021
390: There’s Great Returns And Less Risk In Preferred Equity Lending
In the past couple years, there’s been an unprecedented amount of new multifamily developments under construction. With so many construction loans coming due over the next couple years, there will be many opportunities to provide preferred equity to developers who need gap funding in order to stay alive in their deals. With interest rates having more than doubled, and lenders requiring less leverage, borrowers will need to bring more outside money to the table. Darin Davis, Co-founder and Principal of Presario Ventures, is a seasoned Texas multifamily operator, who is providing preferred equity to builders of new multifamily apartments.
389: Outparcels Are In High Demand
A sector of Real Estate that remains robust is outparcel developments. The demand for great locations exceeds current supply. Outparcels are attractive because they have great visibility, and they don’t compete with dozens of other tenants. Rents are typically higher, but well warranted based on traffic counts and visibility. Typical tenants are fast food, fitness chains, car washes, and gas stations. Josh Weiner, Principal of KLNB Commercial Real Estate Services, based in Northern Virginia, works with developers, investors, and owners throughout Maryland and Virginia.